The impact of informal contacts on communication efficiency in hierarchical organizations

The impact of informal contacts on communication efficiencyin hierarchical organizations

Modeling small-worldliness in a hierarchical network

Master thesis defense

Remko Arts

“Lekenpraatje”

How do informal contacts impact the communication efficiency of a hierarchical organizational communication structure?

Informal contacts

Informal contactsCommunication efficiency

Hierarchical organizationsInformal contactsCommunication efficiency

What is ahierarchical organization?

Team clustering

Information qualityTeam specializationAvailability

Team members

are clustered

Communication efficiencyInformal contacts

Hierarchical organizations

What are

informal contacts?

ARE ABOUT :

COFFEE

Impact on communicationInformal contacts

Network reach

Communication efficiencyHierarchical organizationsInformal contacts

What isCommunication efficiency?

MeasureSomething we

Team Clustering

Networkreach

3 Components:

Team Clustering

Network reach

EfficiencyHierarchy Informalcontacts

Modeling

Previously: empirical

Modeling

Buthow

Exactly?

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Structure in 5s: A synthesis of the research on organization design. Management Science. 26(3), 322-341.Mintzberg, H. (1983). Structures in fives: Designing effective organizations. Upper Saddle River, NJ, Prentice Hall.Newman, M., Barabási, A.-L., & Watts, D., (2006). The structure and dynamics of networks. Princeton, NJ, Princeton University Press.Pool, I., & Kochen, M. (1978). Contacts and influence. Social Networks, 1(79), 5-51. Rapoport, A. & Horvath, W. (1961). A study of a large sociogram. Behavioral Science, 6, 279-291. Reagans, R., & McEvily, B. (2003). Network structure and knowledge transfer: The effects of cohesion and range. Administrative Science Quarterly, 48, 240-267.Uzzi, B., & Spiro, J. (2005). Collaboration and creativity: The small world problem. American Journal of Sociology, 111(2), 447-504.Walsh, T. (1999). Search in a small world. In Dean, T. (Ed.), Proceedings of the Sixteenth International Joint Conference on Artificial Intelligence (pp. 1172-1177). San Francisco, CA, Morgan Kaufman Publishers Inc.Watts, D. (1999). Networks, dynamics, and the small-world. American Journal of Sociology, 105(2), 493-527.Watts, D. & Strogatz, S., (1998). Collective dynamics of small-world networks. Nature, 393, 440-442.Wilensky, U. (1999). NetLogo. Center for Connected Learning and Computer-Based Modeling, Northwestern University, Evanston, IL. Retrieved Nov 20, 2010 from: http://ccl.northwestern.edu/netlogo/ Wilensky, U. (2005). NetLogo Small Worlds model. Retrieved Nov 20, 2010 from: http://ccl.northwestern.edu/netlogo/models/SmallWorlds. Center for Connected Learning and Computer-Based Modeling, Northwestern University, Evanston, IL.Wu, L., Waber, B., Aral, S., Brynjolfsson, E., & Pentland, A. (2008). Mining face-to-face interaction networks using sociometric badges: Predicting productivity in an IT configuration task. Draft. Retrieved on September 20, 2012 from: http://ssrn.com/abstract=1130251

Scientific papers

+/- 40 scientific papers

Watts & Strogatz (1998)

Watts, D. & Strogatz, S., (1998). Collective dynamics of small-world networks. Nature, 393, 440-442.

Remko Arts

Characteristic path length

Clustering coefficient

TeamClustering

Networkreach

Clustering and Ch. Path LengthShort Characteristic path length

High Clustering coefficient

𝑪(𝒑)=∑|𝒗|

(𝒌¿¿ 𝒗 ∙(𝒌𝒗−𝟏))/𝟐𝒆 ¿

Small-worldlinessSmall-worldliness

SW = C / L

Watts & Strogatz vs Remko RemkoWatts & Strogatz

Regular network (ring)Randomness

Efficiency

High Clustering +

Short characteristic path length

=High small-worldliness

Hierarchical networkInformal contactsCommunication efficiency

Tight teams+

Great network reach

= Efficient communication

Research question #1

How should the effect of informal contacts on communication efficiency in hierarchical organizations

be modeled?ANSWERED

NetLogo(Wilensky, 1999)

+/- 15 pagesof code

Exp. #1: Watts & StrogatzREPRODUCED

NetLogo Watts & Strogatz rep.

SW peak

Does the efficiency of organizational communication networks change when

informal connections are formed?

NetLogo hierarchy

Exp. #2: Hierarchy

No SW peak

Do informal connections affect different organizational communication structures

equally?

Exp. #3: Hierarchy depthDeep: 8 layersShallow: 2 layers

(Exp. # 4 in thesis)

Exp. #3: Hierarchy depthDeep: 8 layersShallow: 2 layers

(Exp. # 4 in thesis)

Conclusions

What have we

Learned?

Thesis

Problem statement

How do informal contacts impact the communication efficiency of a hierarchical organizational communication structure?

Conclusions

Informal contacts Increase network reach

Decrease team clustering

Conclusions

Small organizationsSuffer more from the decreased

team clustering

… efficiency decreases

Conclusions

Large organizationsBenefit more from the

decreased network reach

… efficiency increases

Limitations

Thanks

Remko Arts

Let’s get informal.

: remkoarts http://remkoarts.nl/archive/Thesis and presentation available from:

The impact of informal contacts on communication efficiency in hierarchical organizations

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